The Indian market is served for many years, not only because of the need of raw materials to foster the nation economic growth but also because India is the third largest producer of coal. Difficult regulatory framework and business environment slow the development of coal production.

India is well endowed in terms of most minerals and the country´s mining sector has great potential. While demand for commodities has been strong, supply has been constrained. This has resulted in increased import.

Jindal Steel & Power Ltd (JSPL) Phase-I capacity of Angul steel making unit has touched 2.5 million tonne and aims to achieve its envisaged capacity of six million tonne at its by the end of 2015. The coal gasification plant at Angul has already started. JSPL plans to produce sponge iron soon using synthesis gas from its coal gasification plant.

In order to meet the future requirement of iron ore, Steel Authority of India (SAIL) plans to explore new iron ore deposits in the states of Rajasthan, Chhattisgarh, MP, Maharashtra, Odisha and Karnataka. The company wants to implement new ore mining project as it plans to raise its steel making capacity by up to 50 per cent to 21 million tonne by this fiscal.

CS Verma, Joint Chairman of Steel Authority of India (SAIL) informed that ICVL has identified at least four or five good coking coal mines in Australia, the US and Mozambique for acquisition. International Coal Ventures (ICVL), a consortium led by SAIL, is conducting due diligence on these assets. It may be recalled that ICVL was formed in 2009 by public sector firms like NTPC, Coal India, NMDC and Rash

The government's move to give forest clearance for mining by Steel Authority of India (SAIL) in the Gua iron ore mines in Jharkhand may boost raw material supply for its steel plant. The company plans to increase the production of iron ore, which is a key raw material for steel making, as part of its steel capacity expansion projects